Steps
- Go to Payroll โ Setup โ Earnings & deductions.
- Tick what each item counts towards: Taxable, NSSF, SHIF, Levy, Pension.
- An expense refund is not income: untick them all.
Good to know
- Unticking NSSF, SHIF or the levy can raise PAYE slightly: those deductions reduce taxable pay, so excluding an allowance from them leaves more taxable pay.